Revenue decline, earnings growth
Segment revenue declines
In Q3, revenues in the Smokeable Products segment decreased nearly 3% YoY to $5.4 billion, mainly due to lower shipment volume and higher promotional investments, partly offset by higher pricing. Domestic cigarette shipment volume fell 8.2%, mainly due to the growth of disposable e-vapor products and discretionary income pressures on customers. Discretionary income pressures have led to growth in the discount segment, where there appears to be room for expansion in an inflationary environment.
Marlboro’s retail share of the total cigarette category dropped by 1.2 share points to 40.4%. The brand’s share of the premium segment grew by 0.3 share points to 59.6%.
Revenues in the Oral Tobacco Products segment declined nearly 5% to $689 million, driven by lower shipment volume and a higher percentage of on! shipment volume relative to MST versus the prior year, partly offset by higher pricing. Domestic shipment volume fell 9.6% in the quarter.
In the US, the nicotine pouch category grew to 55.7% of the oral tobacco category, up 11.1 share points YoY. on!’s share of the nicotine pouch category dropped 4.1 share points to 15.6%.
Raised outlook
Altria raised the lower end of its outlook for full-year 2025 and now expects adjusted EPS of $5.37-5.45, which represents YoY growth of 3.5-5.0%.